Communication Management in Virtual Worlds: The Next Challenge Neville Hobson, ABC VP New Marketing, crayon EuroBlog International Research Symposium 2007 Gent, Belgium March 16, 2007

This Is Not About Technology Rapid, disruptive change all around us, largely driven by technology Changing attitudes and mindsets influenced by technology Shifts in trust and increasing demands for transparency facilitated by technology

Rapid, disruptive change all around us, largely driven by technology

Changing attitudes and mindsets influenced by technology

Shifts in trust and increasing demands for transparency facilitated by technology

This Is Not About Technology Relationships Productive Effective Constructive Evolving Engaging Changing Social Behaviours Informality Expressiveness Collaboration Co-creation Sharing Engagement

Relationships

Productive

Effective

Constructive

Evolving

Engaging

Changing Social Behaviours

Informality

Expressiveness

Collaboration

Co-creation

Sharing

Engagement

Seismic Shifts Evolution from read-only to read/write and sharing/giving, aka Web 2.0 “ Content creator” and “consumer” are being re-defined Anyone with a point of view can talk with the world Text Audio Video Disrupting traditional businesses and models Changing perceptions of image and reputation Corporate Personal New companies, new ideas, new behaviours appearing to leverage the shifts

Evolution from read-only to read/write and sharing/giving, aka Web 2.0

“ Content creator” and “consumer” are being re-defined

Anyone with a point of view can talk with the world

Text

Audio

Video

Disrupting traditional businesses and models

Changing perceptions of image and reputation

Corporate

Personal

New companies, new ideas, new behaviours appearing to leverage the shifts

The Virtual Landscape

Origins Such worlds began as the modern, interactive equivalents of Nordic myths and Tolkien fantasies They allow participants to escape into their imaginations Designed for deep levels of participation Businesses now paying attention Some participating

Such worlds began as the modern, interactive equivalents of Nordic myths and Tolkien fantasies

They allow participants to escape into their imaginations

Designed for deep levels of participation

Businesses now paying attention

Some participating

What is Second Life? Second Life is a 3-D virtual world entirely built and owned by its residents Opened to the public in 2003 Explosive growth in past 6 months Today, membership is more than 4.6 million people from around the world Top 5 countries: USA: 31.19% France: 12.73% Germany: 10.46% UK: 8.09% Netherlands: 6.55% Top 4 European countries = 51% of total membership

Second Life is a 3-D virtual world entirely built and owned by its residents

Opened to the public in 2003

Explosive growth in past 6 months

Today, membership is more than 4.6 million people from around the world

Top 5 countries:

USA: 31.19%

France: 12.73%

Germany: 10.46%

UK: 8.09%

Netherlands: 6.55%

Top 4 European countries = 51% of total membership

What is Second Life? A self-sustaining economy, where you can buy and sell goods and services and make real money In November 2006, the first Second Life millionaire emerged, the result of shrewd virtual property dealing

A self-sustaining economy, where you can buy and sell goods and services and make real money

In November 2006, the first Second Life millionaire emerged, the result of shrewd virtual property dealing

Participating in Second Life

Why?

Why? The desire to create and develop a personal connection with people (customers, employees and others) in a place where there are no real-world manufacturing or service costs and few barriers to what’s possible It represents a completely new way to interact and communicate with people via the internet Experimenting and learning how to adapt business, marketing and communication models to a new and emerging marketplace Breaking new ground, making connections with many of the early adopters among the Second Life community

The desire to create and develop a personal connection with people (customers, employees and others) in a place where there are no real-world manufacturing or service costs and few barriers to what’s possible

It represents a completely new way to interact and communicate with people via the internet

Experimenting and learning how to adapt business, marketing and communication models to a new and emerging marketplace

Breaking new ground, making connections with many of the early adopters among the Second Life community

Collaboration More than 2,000 IBM employees are members of Second Life Share ideas and work together on projects “ Alumni block parties” Current and former employees get together in ways that would be impractical in the real world Meeting places and technology showcases Experimenting in virtual reality business Set up stores as virtual commerce demonstra-tion projects Circuit City and Sears

More than 2,000 IBM employees are members of Second Life

Share ideas and work together on projects

“ Alumni block parties”

Current and former employees get together in ways that would be impractical in the real world

Meeting places and technology showcases

Experimenting in virtual reality business

Set up stores as virtual commerce demonstra-tion projects

Circuit City and Sears

Research and Experimentation Starwood Hotels constructs a hotel in Second Life Prototype of new hotel brand: Aloft, to be launched in the real world in 2008 Use Second Life scripting language to make objects come to life Sliding doors, lighting controls, etc Create virtual hotel from real architectural plans Plans refined in response to feedback from architects Overall plans adapted in response to feedback from Second Life users Responses actively sought and encouraged

Starwood Hotels constructs a hotel in Second Life

Prototype of new hotel brand: Aloft, to be launched in the real world in 2008

Use Second Life scripting language to make objects come to life

Sliding doors, lighting controls, etc

Create virtual hotel from real architectural plans

Plans refined in response to feedback from architects

Overall plans adapted in response to feedback from Second Life users

Responses actively sought and encouraged

Relationships and Business American Apparel Sells virtual clothing Dell Computer Sells real computers for delivery to your home or office, in the real world Toyota Test drive cars

American Apparel

Sells virtual clothing

Dell Computer

Sells real computers for delivery to your home or office, in the real world

Toyota

Test drive cars

The Virtual Landscape Today

The Transition is Coming If this really is the start of something big, those companies that explore the technology now may be in a better position later, much like the first companies to grasp the importance of the web in the early 1990s The transition is coming, and you may not have as much time as you had with the web to adjust to its impact. Sandy Kearney Director of the Virtual Worlds program IBM Source: CIO Insight, March 1, 2007 “ ”

If this really is the start of something big, those companies that explore the technology now may be in a better position later, much like the first companies to grasp the importance of the web in the early 1990s

The transition is coming, and you may not have as much time as you had with the web to adjust to its impact.

Sandy Kearney Director of the Virtual Worlds program IBM

Source: CIO Insight, March 1, 2007